Mr. Doug Pollard reports

POLLARD BANKNOTE AWARDED FIVE-YEAR PRIMARY CONTRACT BY MICHIGAN LOTTERY FOR INSTANT GAME TICKETS

Following a competitive procurement process, Pollard Banknote Ltd. has been awarded a primary contract from the Michigan Lottery to provide instant game tickets. This marks the extension of a long-standing partnership between Pollard Banknote and the Michigan Lottery. Under this most recent agreement, Pollard Banknote will provide approximately 90 per cent of the lottery's instant tickets per contract year. The initial contract term is five years, with the option to renew in one-year increments for up to five additional years. In addition to instant game tickets, the lottery also awarded Pollard Banknote a contract to supply validation pull-tab tickets.

As a partner to the Michigan Lottery since 1996, Pollard Banknote is immensely proud of the role it has played in supporting the lottery over the years, providing a wide range of instant games, retail solutions and omnichannel products. From fiscal year (FY) 2013 to FY 2023, Pollard Banknote printed approximately 90 per cent of the lottery's instant games. The lottery earned the distinction of the fastest-growing United States lottery in terms of instant ticket sales per capita, with a phenomenal 182-per-cent increase during that time; this is particularly impressive when compared with the average U.S. lottery growth of 66 per cent in instant ticket sales per capita. This growth catapulted the lottery's per-capita sales ranking to seventh among U.S. lotteries over the same 10-year period.

Combining their years of expertise, Pollard Banknote has collaborated with the Michigan Lottery to curate an outstanding portfolio of games. In 2022, the lottery's first $50 game, $300,000,000 Diamond Riches, leveraged Scratch FX to bring vibrancy to its diamond theme, helping drive strong sales and engagement with players. In addition, Pollard Banknote has worked closely with the lottery to optimize its $20 price point to offer a diverse selection of games, including a variety of unique print innovations and enticing prize structures, to appeal to a broad spectrum of players. As a result, the lottery's $20 price point has grown a remarkable 385 per cent from FY 2013 to FY 2023, making it the fastest growing among U.S. lotteries. Pollard Banknote has also been instrumental in the strategic development of the lottery's core game category, including Cashword and Wild Time, leading to a 106-per-cent increase in Cashword sales and a 204-per-cent increase in Wild Time sales from FY 2013 to FY 2023.

Pollard Banknote has also supported many retail initiatives over the years. The lottery utilizes a variety of innovative products from Pollard Banknote's Schafer retail solutions+ (SRS+) portfolio to strengthen its retail footprint throughout the state, including over 2,300 lighted ticket menu boards and all-in-ones, outdoor fuel menu boards, and a variety of dispensers.

The partnership between Pollard Banknote and the lottery is further solidified by the company's deep roots in Michigan. With an established and robust footprint in the state, including a full instant ticket manufacturing facility in Ypsilanti and nearly 350 Michigan-based employees, Pollard Banknote plays an active role in creating job opportunities, generating tax revenue and supporting other local businesses, which contributes to positive economic growth. In fact, according to a recent economic report by East Lansing-based Anderson Economic Group, in 2022 alone, Pollard Banknote created 475 jobs in the state and spent more than $92.6-million (U.S.) operating and investing in its Michigan facilities, generating a total of $51.7-million (U.S.) in economic activity.

At its manufacturing plant in Ypsilanti, Pollard Banknote produced approximately seven billion ESS (equivalent single size, or two-inch by four-inch) instant tickets for lotteries around the globe in 2023, including the majority of the Michigan Lottery's tickets. As evidence of the company's commitment to continuous improvement, between 2015 and 2022, Pollard Banknote made nearly $30-million (U.S.) worth of major capital investments at this facility, including a $20-million state-of-the-art Tresu press.

"We are honoured to be selected as the primary supplier of instant game tickets to the Michigan Lottery," said Doug Pollard, co-chief executive officer, Pollard Banknote. "We deeply value the relationship we have built with both the Michigan Lottery and the communities in which we operate within the state. As a testament to our successful collaboration, and efforts to deliver outstanding games and innovative retail solutions into the Michigan market, we take pride in having contributed to four-fold sales growth since the start of our partnership almost 30 years ago. We look forward to continued success and growth in the years to come."

Since it was established in 1972, the mission of the Michigan Lottery has been to maximize revenue to support public schools by providing fun and entertaining games of chance. Michigan Lottery contributed almost $1.3-billion (U.S.) to the state of Michigan School Aid Fund in FY 2023. All profits from the sale of Michigan Lottery tickets (more than $28-billion (U.S.) since 1972) go to the School Aid Fund.

About Pollard Banknote Ltd.

Pollard is a leading lottery partner to more than 60 lotteries worldwide, providing high-quality instant ticket products, licensed games, in-lane ticket options and sales-driving merchandising solutions from its Schafer Retail Solutions plus portfolio. It also offers a full suite of digital offerings, ranging from world-class game apps to comprehensive player engagement and iLottery solutions, including strategic marketing and management services. The company is a proven innovator, and has decades of experience helping lotteries to maximize player engagement, sales and proceeds for good causes. Pollard also provides pull-tab tickets, bingo paper, ticket vending machines, and its Diamond Game and Compliant Gaming electronic games and devices to charitable and other gaming markets in North America. Established in 1907, Pollard is owned approximately 64.2 per cent by the Pollard family and 35.8 per cent by public shareholders, and is publicly traded on the Toronto Stock Exchange (PBL).

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